Location: Montezuma County, CO | Metro: Montezuma County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 81334, located in Montezuma County, CO, presents a unique opportunity for real estate investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for the metro area in fiscal year 2026 is $1,060. In comparison, the actual market rent, based on Census American Community Survey (ACS) data, stands at $424. This significant gap between the HUD FMR and the market rent suggests that voucher tenants can cashflow comfortably at the HUD-set rate.
The median home value in the area is not available, which makes it challenging to derive an exact rent-to-price ratio. However, the absence of a median home value indicates that the area may be primarily rental-focused, or there could be limited residential sales data, leading to an unstable housing market for homeownership. This scenario typically favors rental investments, especially those utilizing Section 8 vouchers.
The average days on market (DOM) and the percentage of homes that experience price cuts before selling are also not available. These metrics are crucial for understanding the balance between renting and buying in the area. Given the limited data on home sales, it is reasonable to infer that the rental market is more robust and stable compared to the buying market.
In conclusion, the strong cashflow potential from voucher tenants, combined with the lack of significant competition from homeownership opportunities, makes ZIP code 81334 an attractive investment for Section 8 landlords and small-portfolio investors seeking steady returns. The primary investor angle here is cashflow, given the substantial difference between the HUD FMR and the local market rent.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.